business tips

The Fundamentals of Purchase Order Funding

Finance

In the world of resellers and distributors, a sudden spike in sales or customer demand is not uncommon. If you want to keep your business successful, you have to be prepared or well-funded when these situations arise.

Turning down a customer’s purchase order may not only cause you your sales but also customer loyalty and satisfaction as well. Capital solutions specialist MRKT Capital believes that purchase order financing is a quick and efficient way to fulfill those unexpected large purchase orders.

You can sum up the basic process in eight steps

  1. Your customer gives you a purchase order.
  2. You give this purchase order to your supplier and they reply with a written proposal stating how much it would cost.
  3. You apply for PO financing presenting the supplier’s proposal and get approved.
  4. The financing company pays your supplier, and your supplier fulfills the order.
  5. Your customer receives his order, and you send him his invoice.
  6. The customer sends payment directly to the financing company.
  7. The financing company deducts their fees and gives you the rest.

It’s a simple process

As long as you meet the qualifications required by the financing company, you can benefit from this system. These are:

  1. You are a reseller or distributor of material goods.
  2. Your supplier and customer are both creditworthy (No history of bankruptcy or serious litigation).
  3. You have a minimum of 15% or 20% profit margin (Depending on the financing company).
  4. You have a completed written purchase order from your customer.

Now, there may be other funding options available to your business. What’s important is that you analyze and understand each one, and choose what’s best for your business needs, and what’s most attainable for your finances.

Having long business relationships with suppliers and customers will not only get you the best rates, but will also build trust and loyalty with the entities that make your business whole.

4 Ways to Reduce Business Expenses

Finance

Times are tough, and if you want to stay competitive, it makes sense to adjust your operations to increase income and decrease expenses. Here are some tips on how to do this:

Outsource Bookkeeping Solutions

Start by outsourcing the services that are not an integral part of your business. While bookkeeping is essential, there’s no need to maintain an accountant in your list of employees. Bookkeeping can be outsourced, which means you’ll only have to pay for the service when the accounting year ends, saving you thousands in the process.

Sell What You Can

This refers to items or materials that you would ordinarily throw away but can be sold at a fraction of a cost. For example, you can sell on cartons, boxes, or recycle used paper in your office wastebasket. Even if you can’t sell something, the government provides for tax incentives that should help lower your bills while making you more environment-friendly.

Be Brave with Technology

Bring your business to the future by signing up with all kinds of social media accounts to establish an online presence. It’s not enough that you have a Twitter and Facebook, however. Feel free to check out new platforms – even the ones that don’t have a big following yet. Investing just a few minutes of your time each day on these new marketing platforms can put you ahead of the competition.

Reduce Repetitive Expenses

Evaluate your expenses and see if you’re making the right decisions when it comes to renting versus buying. If you have repeated expenses, you’ll find that over time it’s better to buy rather than rent. For example, are you renting the equipment in the office? Try to calculate the length of time you’ll be using that item. Would it have been better to simply buy it in the long run? Make room for this in your budget.

Of course, those are just some of the methods to lower your business expenses. It often pays to be hands-on with your start-up and simply expand as the need arises.

3 Credible Ways to Grow Your Salon Business

Fashion and Beauty

Salon Business in Salt Lake CityGood grooming is an essential part of life and helps to build your self-confidence. Neat hair, manicured nails, and sharp dressing can lift your mood and project confidence. Your appearance bears a significant influence on the way people see you. It can make people listen to you or even buy your services.

As people are conscious about their looks, you can latch on to this need and establish a successful salon to improve your finances. However, you need to take note of some factors before venturing into the grooming business.

Stay on Top of Your Game

Since the ability to groom ties closely to people’s happiness as well as professional success, you need to stay on top of the game. Therefore, you need to boast exceptional skills, knowledge, and keep up with the latest happenings in fashion. By attending a beauty school in Salt Lake City or anywhere in Utah, you can acquire the knowledge, skills, and trade secrets to get you off to a good start.

Roll out Effective Marketing Strategies

Word of mouth is an effective way of marketing a business and is quite useful in the beauty industry. People are likely to recommend remarkable services to their friends and relatives. Therefore, providing quality services to your customers is a good marketing strategy. Having an active social media platform is also a great way of increasing your reach and interacting with your clients. Quick response to inquiries on you pages helps to establish authority and build trust among your customers.

Value Your Customers and Show Them Appreciation

Customers are happy to spend money in an environment where they feel valued and appreciated. Therefore, you need to extend them utmost courtesy and professionalism at all times. Keep your rates affordable and the level of quality high and they will keep coming back. Ensure your staff members have proper training and skills to meet the needs of the clients.

To look good and lift their mood, people often turn to beauty salons for help. This makes them a viable business venture. With these pointers, you can stay ahead of the curve and keep customers happy and stylish.